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Oracle Presents an Interesting Opportunity


© Reuters. Morgan Stanley presents an interesting opportunity for Oracle (ORCL).

Sam Boughedda

Morgan Stanley analyst Keith Weiss reiterated a Equal Weight rating on Oracle (NYSE) Monday and a $88 price target. He stated that shares represent an intriguing opportunity.

When asked if Oracle was a safe ship to sail in turbulent seas, the analyst stated that greater confidence in the underlying drivers for a modest revenue acceleration during FY23 and expectations for OM sustain above pre-pandemic levels make it appear like Oracle offers an “interesting opportunity” on a relative basis.

Weiss stated that the shares had outperformed this year. The debate now centers on whether there’s still value in Oracle’s value trade. As investors go through a time of increasing interest rates, multiple compression and software changes, reasonable valuations are considered a safe harbour.

According to him, “From this perspective, Oracle represents an exciting opportunity for higher-than-expected earnings growth in a turbulent marketplace.”

Weiss believes that there are positive data points about the Oracle core business’ momentum, which leads to the conviction that shares can adequately discount uncertainties.

Oracle will report fourth quarter results by June 13th, 2022.